U.S. filings for unemployment benefits unexpectedly fell last week to the lowest level since January 1973, further evidence that the labor market remains tight, Labor Department figures showed Thursday.

Four-week average of initial claims, a less-volatile measure than the weekly figure, fell to 224,500 from the prior week’s 225,000

Key Takeaways

Claims at the lowest level in 45 years underscore a persistent shortage of qualified workers that has made employers reluctant to fire staff. Applications for jobless benefits below the 300,000 tally are typically considered consistent with a healthy labor market.

To summarize:

-Unexpected (ever notice how good news in the Trump era is so often framed as being “unexpected”?)

-It means there is a persistent shortage of workers (bad news – better let some more of those illegals in to fill the gaps);

-Employers can’t fire staff (bad news – if an employee is deficient the employer is stuck with that person anyway);

-Jobless benefits below 300,000 are typically considered consistent with a healthy labor market (not that 215,000 is a huge difference, not consistent with anything since it hasn’t happened since Nixon was President, and therefore a major accomplishment….just “consistent with a healthy labor market.” Yawn).

The title of this blog is “Desperately Spinning Great Economic News”. Anyone still wondering why?